Rebel Manufacturing produced 20,000 units and sold 18,000 units for $85 each during its first year of operations. Rebel incurred the following costs during the year:

	Total costs	Number of Units	Unit Cost
Direct materials	$120,000	20,000	?
Direct labor	$280,000	20,000	?
Variable factory overhead	$220,000	20,000	?
Fixed factory overhead	$680,000	20,000	?
Total	$1,300,000		?

Answer the following questions for Rebel Manufacturing if Rebel uses Absorption Costing:

Total per unit cost
Cost assigned to ending inventory
Cost of goods sold

Answer the following questions for Rebel Manufacturing if Rebel uses Variable Costing:

Total per unit cost
Cost assigned to ending inventory
Cost of goods sold

Type in the space below either the words Absorption Costing or the words Variable Costing to indicate under which method higher net income would be reported on the income statement.

Which type of expense is treated differently under the two methods?